Tallinn-based PowerUP Energy Technologies has closed a €10 million Series A funding round to accelerate the manufacturing and commercialisation of its hydrogen-powered electric generators.
The investment, co-led by dual-use venture firms Mercaton and ScaleWolf and joined by Estonia’s SmartCap Green Fund (funded by the European Union’s NextGenerationEU).
“PowerUP was founded on a clear mission: to deliver clean, reliable energy solutions. While other technologies are still being tested in labs, ours has already been battle-tested on the front lines in Ukraine. This is the very definition of dual-use innovation: a CleanTech solution that has been forged and validated by the urgent needs of defense,” says Ivar Kruusenberg, founder and CEO of PowerUP Energy Technologies. “This capital will directly allow us to expand our network of resellers, distributors and partners in defense and in the commercial sector.”
In the same or adjacent segment, 2025 sector activity includes Estonia’s Galtec, which secured €1 million in pre-Seed funding to advance micro-tubular solid-oxide fuel cells for drones and IoT devices.
With both companies located in Estonia, the data suggests a concentrated cluster of early-stage fuel-cell innovation emerging in the Baltic region. Against this backdrop, PowerUP’s €10 million round stands out for its scale and emphasis on manufacturing and commercial deployment, compared with the more research-oriented funding seen elsewhere in the sector.
“At ScaleWolf, we value technologies that strengthen security and resilience where it matters most. PowerUP has shown that its systems can deliver dependable power in demanding environments, supporting both defence missions and essential civilian operations. We are proud to back a team that turns proven performance into meaningful dual-use capability,” adds Dave Harden, Partner at ScaleWolf.
PowerUP Energy Technologies, founded in 2016, develops and manufactures versatile, modular hydrogen fuel cell solutions for a wide range of applications, ranging from defence to industrial, and off-grid sectors. PowerUP’s generators reportedly offer silent, emission-free operation, making them suited for sensitive military forward operating units and critical civilian infrastructure.
The dual-use nature of the technology means that PowerUP’s solutions, first engineered for space missions with the European Space Agency, translate directly to the demands of defence – such as energy independence and remote use.
The €10 million injection will be deployed to meet rising demand from both sectors:
- Commercial Expansion: Expanding sales and technical support teams to enter new commercial markets, focusing on backup power for critical infrastructure.
- International Footprint: Establishing strategic sales and support hubs in core target markets (e.g., Central Europe and North America) to localise service and capitalise on growing international interest in resilient energy solutions.
- R&D: Accelerating the development of higher-density fuel cell models tailored for diverse power requirements.
“PowerUP is a great example of a broadly applicable green technology company that can capture the changing market opportunities of green transition and quickly address new market needs in defence. PowerUP develops and manufactures hydrogen fuel cell generators as main or backup power, or as battery extenders, for reliable, sustainable energy.
“This has also turned to be a critical technology for modern defence and security applications, like enabling advanced communication networks and surveillance systems with low noise, vibration, and heat signature, where the choice of tech is driven first and foremost by reliability and performance rather than climate objectives,” said Sille Pettai, Managing Director of SmartCap.
Read the orginal article: https://www.eu-startups.com/2025/11/space-engineered-defense-proven-power-units-position-estonias-powerup-for-a-e10-million-expansion/
